Question: Consider a project with the following information: initial investment $750,000; straight-line depreciation to zero over five-year life; $25,000 salvage value; price per unit $76; variable

Consider a project with the following information: initial investment $750,000; straight-line depreciation to zero over five-year life; $25,000 salvage value; price per unit $76; variable cost per unit $36; annual fixed costs $11,000; annual quantity sold 15,000 units; Tax Rate 20%. What is the sensitivity rate of Operating Cash Flow to fixed costs?

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